The clearing of credit defaults swaps took another step forward last week as the Securities and Exchange Commission granted CME Group a special exemption for clearing and trading CDS using its CME unit and CMDX platform. The exemption allows CME Group to “launch CDS clearing and trading in the U.S.,” according to the firm.

But Timothy A. Canova, professor of international economic law and associate dean for academic affairs at Chapman University School of Law, believes clearing may be too late to prevent further concerns, pointing to the still unwinding of AIG positions.

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